A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

Thanks for reading and adding some most lucid comments, Phr3d. Onya for staking a position in the New GM very early-on!

GM investors have 2 big mileposts remaining: one is the determination of whether the pre-bankruptcy indemnification stands. The second, apparently less of a long-term issue, is the conclusion of the DoJ investigation and fine.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

american patriot

Generally, politics and investing make for poor bedfellows.

I'm not sure where you wish to go with the comment above, but the bankruptcy proceedings were completed in 2009. These are now over. Many may not have agreed with some of the rulings: I did not like the way certain GM bondholders were strong-armed. Others argued General Motors should have been allowed to go Chapter 7 and into liquidation. All great cocktail-party debates; but it's not going to change anything.

Since 2010 (the first full year post-bankruptcy), GM has increased operating cash flow. YE 2010 OCF was $6.8 billion. Last year, it was $10.1 billion. Some investors have been watching that. Warren Buffett, for one?

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

Yes, after reading the WSJ article, GM's pre-bankruptcy indemnification claim isn't a lock. Losing it would touch off a long legal battle over pre-2009 economic damages. Some trial lawyers will argue that not should affected car owners receive compensation, but ANY GM car owner, whether the ignition-switch issue affected their vehicle or not.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

I believe post-2009 GM owners could pursue economic damages, if the car was built by the "new" GM.

Beyond that, I'm not certain of the repercussions. If one brings a car in and has the ignition switch replaced, it will take the lawyers to prove or disprove that the car has been "tainted" versus what it would have been worth otherwise.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

Very good points about younger U.S. buyers and how Japan corners their home market. On the other hand, China has partnered with GM to the benefit of both parties. GM is experiencing solid growth in that market.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

The issue would be a blow to the company. However, the potential losses are for economic damages only, as GM agreed to compensate pre-bankruptcy fatalities or injuries. The article I posted in an earlier comment speculated that the costs could be ~$2 billion extra if the BK defense is busted.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

Certainly a key development to watch, Trade2Travel1. The Delphi story is a problem contingent upon all the details / facts. Everyone on all sides is talking their book here; the judge is the opinion that counts.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

Thank you for reading and commenting on the technical view, Brad. Your input is always appreciated.

While I tend to be a fundamental investor, I do check the charts, too. However, I like to check the weekly charts as my holding horizon tends to be a minimum of 18 months. The weeklies look better: a falling trend since 2014 broke out in February, with the MACD, Money Flow Index, and DMI all looking pretty good.

As usual, I recommend buying in increments. Indeed, the market as a whole may be due for rest. Sound advice to be patient. Good luck with all your 2015 investments.

A Dissolving Overhang Marks General Motors A 2015 Top Choice [View article]

trade2travel1

I agree. Such a ruling could open GM up to diminution of value (economic) claims from additional plaintiffs. However, my understanding is this requires evidence that current GM execs committed fraud. The tab for such an action could bump $2 billion more to the current total. Here's a Washington Post / Bloomberg article for some additional color: